Submitted By: someone
Answered: June 1, 2022 2:45 am

I received a wrongful death settlement following the death of my relative. Is this taxable to me or to her estate?

A wrongful death settlement of compensatory damages is nontaxable because it is the result of a claim arising from personal physical injury or illness. However, if the settlement includes punitive damages and/or interest, that portion of the settlement is taxable.

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Tax Glossary

Independent contractor

One who controls his or her own work and reports as a self-employed person.

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